Appellant Prevails: No Duty on Aluminium Dross

The Tribunal ruled in favor of the appellant, holding that no duty is payable on aluminium dross as it is a by-product of the manufacturing process, as established by relevant court decisions. The impugned order was set aside, and the appeal was allowed with consequential relief.

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Issues:
Demand on account of clearance of Aluminium Dross

Analysis:
The appellant, engaged in manufacturing two-wheelers, used Aluminium alloy ingots as inputs to make cast components. During the melting process in a furnace, a layer of molten aluminum oxidizes, forming aluminium dross, which the Revenue demanded duty on. The appellant argued they did not manufacture the dross and cited a Bombay High Court decision. The Tribunal referred to the Bombay High Court's view that certain conditions must be met conjunctively for excise duty imposition. The Tribunal criticized the Revenue for disregarding Supreme Court judgments and quashed the impugned order as perverse and vitiated by an error of law. The Tribunal held that no duty is payable on aluminium dross as it is a by-product emerging during manufacturing, citing a Supreme Court decision in another case.

In another case involving Bajaj Auto Ltd., the Supreme Court observed that during the manufacturing of die-casting of aluminium parts, dross and ash emerge as by-products, leading to no excise duty payable on them. The Tribunal concluded that the issue was no longer res-integra, and no duty is payable on aluminium dross as a by-product of the manufacturing process. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief.

Therefore, the Tribunal ruled in favor of the appellant, holding that no duty is payable on aluminium dross as it is a by-product of the manufacturing process, as established by relevant court decisions.

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